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In Nepal, there is a general tendency to blame the constitution for every political failure. Many voices hold it responsible for rising corruption and political instability. However, no matter how perfect a constitution may be, it becomes nothing more than a piece of paper unless it is implemented in both letter and spirit.

The constitution of Nepal, which came into effect on September 20, 2015, marked the country's transition from a long-stayed unitary system to a federal structure. Federalism was introduced as an alternative to the long-standing constitutional monarchy, which had failed to deliver. Today, however, some youths blame the federal constitution, arguing that provincial governments are an expensive burden for a country with limited resources. Yet, the constitution--with its strong provisions for inclusivity, republicanism, devolution of powers, progressive fundamental rights and federalism—cannot itself be held responsible for the failures of nation's political course.

Need for Moral and Civic Education 

If we revisit the unfortunate incidents witnessed during the Gen-Z protest, the burning of government documents and assets,along with vandalism and looting of both private and publicproperty, conveys the message that a section of society lacks civic sense and is ready to loot at any given opportunity. 

This reflects that the concepts of morality and civic responsibility are yet to be deeply rooted among a section of Nepalis. If our democracy produces youths who can burn government assets and documents, or vandalize private business and property, we can conclude that civic values have been seriously compromised. 

The viral videos reveal the unfortunate reality of some youthswho, while protesting against the incumbent government, also aligned themselves with those looting government offices and private enterprises such as Bhatbhateni Mall. 

This exposes our unchecked greed for money and material possessions. Its high time for the state to introduce subjects, like that of Moral and Civic Studies as mandatory courses at every level of education.  

Blame the politics

In Nepal, none of the governments formed after 1990 have completed a full five-year term. The state has witnessed the greedy dance of political parties in their pursuit of power and positions. We saw communist parties forging alliances with the democratic forces, and even conflicts breaking out within communist alliance governments. These incidents prove that our political parties neither stood firmly with their ideology, nor practiced politics in line with constitutional mandates. 

Perhaps we are the only democracy in world where leaders resort to forgery in Bills passed by the House. We saw that in case of Federal Civil Service Bill this year. 

We might also be the only country where top leaders publicly hurl thorny comments against the opposition. A former education Minister once remarked that KP Oli is like the "Pele of Football" who cannot be defeated or overthrown by any earthly power. KP Oli himself has an inherent habit of passing sharp comments and making fun of others. 

The governments formed after the promulgation of the current constitution have failed to deliver. This is a well-known fact. The state has witnessed massive corruption, limited initiatives for employment creation, and an almost negligible role of the government in ensuring good governance. 

The constitution does not allow for the corrupt practices. However, the document itself, like a ghost, cannot punish the abusers. It’s the government and constitutional mechanisms that must demonstrate a strong commitment to upholding the rule of law. 

We have seen appointments to the constitutional posts made for individuals with clear political affiliations. At times, their power-hungry nature has challenged the principle of separation of powers. A person of high moral stature would ordinarily refrain from accepting positions they believe compromise this principle. Yet, in Nepal, such individuals are rarely found. Should constitution be blamed for this?   We reiterate that moral education and civic sense must be imparted not only to our youths but also to our professionals. 

Way forward

As a matter of fact, no constitutional or legal document is so perfect that it can provide a solution to every given problem of every generation. That’s why, laws and constitutions are regarded as living documents, capable of being amended to ensuring broader ownership and necessary reforms. 

In India, the 1949 Constitution has been amended 106 times so far, and the US constitution has witnessed 27 amendments. In the similar vein, we can introduce amendments in our constitution to make it more progressive. We are already operating our democracy under our seventh constitution. Frequent changes to it every decade would create wrong impression in world and could invite political instability. 

The failure of our leaders cannot be seen as the failure of the constitution. If those at the helm take pledge to practice genuine politics—free from corruption and unlawful elements-- then our democracy would possess everything required for a sustainable future. Our constitution envisions for a welfare state grounded in the firm foundations of the rule of law and good governance. Its high time we translate the mandates of the constitution into reality for advancing the cause of rule of law and a vibrant democracy. 

One of the darkest page in Nepal’s modern history was written on Sept 8, when a democratically elected political leader, Home Minister Ramesh Lekhak from the Nepali Congress, ordered  police force to use lethal force against students clad in school and college uniform, killing 19 in a single day, in New Baneshwor, Kathmandu. 

These young protesters were peacefully demanding an end to systemic corruption and the creation of economic opportunities that would allow them to build their lives and careers in Nepal. Their vision was to acquire skills, education and professional experience at home, benefiting from the stability of their own communities and the support of their peers. In the preceding years and months, Amresh Singh, an independent Member of Parliament (MP) and other MPs from the Rastriya Swatantra Party, had been vigorously exposing high-level corruption, which had allegedly taken place with protection from leaders like Sher Bahadur Deuba of the Nepali Congress, Khadga Prasad Sharma Oli of the UML and Puspa Kamal Dhahal of the CPN (Maoist Center). 

The election of RSP leaders Rabi Lamichhane (Chitwan) and Gyanendra Shahi (Jumla) amplified these revelations, inspiring a national conversation about corruption. However, these voices were suppressed, and corruption continued unabated through scandal like the Visit Visa, Bhutanese Refugee, Wide-body Aircraft, Omni Trade, Patanjali, Giribandhu Tea Estate, Gold Smuggling, capturing big tenders and procurement of goods and services etc, as well as through the political capture of constitutional bodies, court system and government agencies. Literally, these leaders from the NC, UML and the Maoist party have turned Nepal into a Banana republic of sorts.

Through the Gen Z movement, youths ultimately brought to public glare the extravagant lifestyles of leaders like Deuba, Oli and Pushpa Kamal Dahal, revealing vast sums of money and fueling public outrage. The situation escalated into violence, culminating in attacks on politicians’ homes, including the complete destruction of Deuba, Oli and Dahal residences. While such violence is indefensible in a civilized society, it was a direct response to the perceived capture of state institutions to safeguard their mayhem of corruption. The resulting riots inflicted billions of rupees  of damage to government buildings, including Singhadurbar, the Supreme Court and the Parliament Building,  private houses, businesses, at the expense of the nation and her people.

Economic challenges

Following the political fallout, an independent government was formed under the leadership of a former Chief Justice, Sushila Karki, regarded as an “anti-corruption” crusader. On Sept 15, her cabinet was expanded to include key ministries such as Finance, Energy, Home, and Law. The new Finance Minister, Rameshwor Khanal, has the monumental task of crafting an economic policy for the GenZ horizon. 

However, his background is purely administrative, centered on bureaucratic procedure rather than economic policy design expertise. An effective economic policy is a dynamic  economic science focused on  co-integration of fiscal-monetary policy: generating opportunities, creating robust domestic revenue, unwrapping investment opportunities, and making strategic public investments that yield high social returns on public investments (SROI), maximize welfare, and promote  fairness—equality. 

Ancient treatises  of Kautilya, which outline principles of statecraft and sound public finance management, remain relevant for modern economies and underscore the importance of this expertise. For over three decades, successive governments under the Nepali Congress, UML and the Maoist Center (for the last 18 years at the center of Singhadurbar) have utterly failed to deliver essential public goods/services or generate meaningful economic activity and corruption-free governance. Their focus remained on their own political groups’ politics and welfare of their informal wings rather than on public welfare and national development.

A policy framework for Gen Z

Minister Khanal’s policy framework must be fundamentally reoriented toward a public economics approach, which rigorously examines how state intervention shapes individual choices and collective socioeconomic outcomes by expanding space of opportunities, enhancing agency and function. This necessitates an empirical strategy, directly informed by the material conditions and aspirations of Gen Z that integrates macro and microeconomic lenses. At the macro level, this means prioritizing youth employment, education reform, production and inflation control. Microeconomically, it requires targeted analysis of specific sectors, including arts, culture,  sports, entertainments, recreation, housing and natural resources to design effective interventions. 

Critically, this approach demands moving beyond orthodox budgetary triage (current vs capital expenditure) by instituting a dedicated “Gen Z budget segment.” This innovative mechanism would directly fund education reform, vocational training, research, startups and federal-level internships to counter systemic brain drain. Such planning must be evidence-based, replacing politically-driven “shopping list” allocations with rigorous input-output empirical analyses to shift resources from recurrent spending to productive capital investment. 

Furthermore, policy must balance the preservation of essential social safety nets with the creation of new, equitable opportunities for youth. Minister Khanal must recognize climate change not merely as a threat but as a source of externalities that can generate new careers in adaptation and mitigation. Strategically, prioritizing a clean energy sector through energy-derivative economic policies and digital economy innovation would capitalize on domestic potential rather than perpetuating a raw energy export model to India and Bangladesh.

Overcoming hurdles

Khanal’s most critical challenge is the structural reform of Nepal's compromised fiscal and monetary governance. This necessitates dismantling a culture of patronage within tax administration, where powerful private actors receive unwarranted incentives and waivers, and ending chronic issues like trade mis-invoicing and preferential financing. Furthermore, he must impose strict discipline on public loan-funded projects, which are plagued by poor selection, BOQ manipulation, procurement corruption and leads to massive costs and time overruns, often benefiting a narrow elite rather than the  common interests. 

Concurrently, his agenda requires a strategic reorientation of national economic policy. This involves aligning foreign grants and loans with domestic priorities to build local capacity and employ Nepali experts, rather than subsidizing costly foreign consultants. Tackling inflation through productivity gains, particularly in agriculture, and promoting high-value exports are essential for macroeconomic stability rather than stimulating remit and import tilted economy. Ultimately, his success hinges on the political will to confront rooted interests that have long subverted policy for private benefits.

The federal imperative

Minister Khanal’s paramount challenge is the strategic navigation of Nepal’s federal economic architecture to rectify profound spatial inequalities. For federalism to succeed, his policies must actively dismantle disparities by fostering economic co-integration and creating tangible opportunities across all provinces and marginal geographies, thereby strengthening national cohesion. However, the Ministry of Finance itself represents a significant institutional obstacle, characterized by bureaucratic inertia and a culture of rent seeking. 

Achieving reform demands an overhaul not only of the ministry but also of key affiliates agencies like the Investment Board of Nepal, which operates as a patronage network and the Nepal Rastra Bank, which must redirect monetary policy toward geographic inclusion. Furthermore, Minister Khanal must leverage his industry experience to confront unethical market practices, particularly pervasive cross-ownership in oligopolistic sectors, which distort competition and concentrate economic power.

His success hinges on transforming these deep-rooted structures to unlock Nepal’s economic potential and meet the demands for equitable governance as the Constitution 2015 has pictured clearly.  Ultimately, delivering on this ambitious agenda is the only way to honor the sacrifices of the past and build the stable, prosperous, and equitable Nepal that its citizens, particularly its youth, have fought for and rightly demand!

The events of the eighth and ninth September of this year (2025) were nightmares to Nepal. The first day showed the tyranny of our rulers who did not hesitate using excessive force on unarmed young demonstrators, just because they challenged government restrictions. The second day demonstrated how criminal minds could misuse popular demonstrations as camouflages, and carry out terrorist attacks on civilians, security forces, national institutions, public and private properties, destroy national archives, and loot.

The events, known as the GenZ movement, have taken at least 72 lives, and left over two thousand injured. Some are missing. Many families have lost their lifelines. Some have become homeless. Over ten thousand people have lost their jobs. Estimates are that the country has suffered an economic loss of Rs 3trn, 50 per cent more than the national budget of the current fiscal year. The mental trauma is beyond scale.

Illusion, disillusion, and illusion

Good governance, economic development, inclusive empowerment, and growth opportunity have remained core issues, at least since the 1951 Delhi Accord that ended the Rana dynasty’s direct rule. Dissatisfaction followed that and each of future settlements, ultimately leading to a cascade of political unrests or revolutions, at an approximate interval of one or two decades. Each time a new Constitution was promulgated, the proponents declared it as the “ultimate truth”.

To be brief, the 1951 Revolution pulled down the Rana family rule but consolidated the Shah dynasty while embracing plurality. While the multiparty system was taking root, the monarch scrapped the 1959 Constitution of the multiparty system, and introduced the 1962 Constitution institutionalizing Panchayati system—all in the name of the nation and good governance!

In due course, the multiparty system was reinstated through people’s movements and ultimate promulgation of the 1990 constitution. The disgruntled CPN (Maoist) waged a “People’s War” (1996–2006) against the system. The war and movements led by a seven-party alliance ultimately abolished the monarchy in 2008. After much debates, meddling from INGOs and foreign powers, formation of different caucuses of the Constitution Assembly (CA) members such as women, indigenous groups, and their training in foreign lands, failure of first elected CA, second CA election, collections of people’s suggestions and so on, Nepal was officially declared a federal republic through the 2015 Constitution. 

Article 4 of Part 1 of the Constitution clearly maintains that Nepal is socialism-oriented.

The Constitution is full of promises. It grants 31 fundamental rights to all citizens, including rights to equality, privacy, employment, health, education, food, housing, information and social security. Also included are many freedoms and rights of special groups. Then, why are people unhappy? Because people know that these promises are hollow. The Constitution promises mandatory free elementary education; the public discover the performance of most of the community schools very poor, and the haves are sending their kids to costly private schools. The book promises rights to health; the government sells poorly delivered health insurance to the ordinary, and pays for healthcare of the leaders in foreign hospitals. 

Leaders of parties who present themselves as “vanguards of democracy” issue dictating whips to their members in parliament to vote this or that way on national issues. Leaders, who brand themselves as communists, fail to show a role model, sometimes falling far below one practiced by an ordinary citizen.

Leaders show no shame. A leader tries to get an entry to the House through proportional pathway or direct nomination, after losing the first-past-the-post election. A leader tries to bring his wife, daughter or other relatives in the House, misusing the seats reserved for women. As in Bangladesh, resentments over these issues have built up in Nepali youths, which may foment further unrest in the coming days.

Profiteering has sucked. Schools do not pay the teachers even two-thirds of the fee students pay. Corporates and big houses do not pay their lowest paid worker even one-tenth of what the CEO receives. A doctor educated under government scholarship charges the patients the maximum possible in the market. 

Cartels are commonplace, from politics to business. In politics, the big parties have made provisions that only those receiving at least three percent of the valid votes are eligible to claim proportional seats. Denying healthy competitions based on quality parameters, MOE, MEC, and universities restrict or facilitate colleges, suiting their tastes. 

Policy corruption is rife at all levels: from land ownerships and use to tariffs to revenues to tax exemptions to biddings to clemencies.

Now to the most painful part. Look what happened on Sept 9. Some of those who hit the streets against corruption and for good governance were seen breaking and looting the private homes and markets. Chances are high that such hypocrisy is not limited to one age group.

Wake up, unite

It is time for introspection. People need to wake up, and so do the leaders. You put your voice; others, theirs. To count, let there be free, fair and secret voting. Let’s effectively ban vote-buying. Do not try to obstruct election campaigns of opponents.

Dear parties and leaders, refrain from selling populist slogans. If you mention, I mean it. You are free to propose any political system you like. If your votes allow, you can change the Constitution and laws. Deposit your election manifesto with the Election Commission, and make it public. Do not deviate from it. Do not make extra claims, do not entice the voters, explicitly or implicitly. Let the voters decide. Once the votes are counted, respect the verdict. If you are in a hung parliament, work as a team member, and support the majority. Obey the decisions, even when they are your antithesis. Unite within your party, or leave it. Unite within the parliament, not for the government but for national cause, or leave it. Do not seek external support against your fellow members in your party or parliament.

We need to move forward. We have destroyed our property, damaged infrastructure, caused human fatalities, and injured thousands. Let’s heal the wounds on our own. Let’s not seek external aid and donation. After destroying the economy equivalent to one and a half years’ national budget in just 10 hours, we should feel ashamed to beg and refrain from accepting external aid. Let’s all stakeholders, including different level governments, political parties, businessmen and workers, discuss together and frame a long-term, stable economic policy, encouraging domestic capital, brain and workforce to play their roles in the national reconstruction. Do not forget to include Nepali diaspora in the process. By virtue of their connections and exposure, they may offer far more to national pride than we can imagine.

For trade and development, 2025 is a year like no other. Tariff talks continue to grab headlines. But urgent action is also needed to stop the sun setting on trade development cooperation. This June in Sevilla, global leaders committed to scaling up Aid for Trade (AfT), including doubling AfT provision to the world’s least-developed countries (LDCs), by 2031. However, AfT—which accounts for about one-fifth of official development assistance (ODA)—remains highly exposed to some difficult development assistance challenges. 

ODA dropped seven percent in 2024. And this downward trend is accelerating, with the Organization for Economic Cooperation and Development (OECD) predicting ODA declines of between 10 percent and 18 percent during 2027. LDCs are expected to experience the sharpest falls—of between 13 percent and 25 percent—in 2025. Statistics for AfT specifically are also sobering. In 2023, AfT disbursements fell six percent—from $53bn in 2022 to $50bn in 2023.

Meanwhile, trade needs—from addressing proliferating standards to deepening digital trade cooperation and finding ways to boost investment—are mounting. Targeted support is required to help developing economies, especially smaller ones, meet their trade needs, realize emerging trade opportunities and gain a greater share in global trade. 

Here are three ways we can help deliver on this, despite a challenging backdrop.

Maximum impact from resources

A wealth of knowledge on trade support has been generated over the years. So we have been working to capture experiences and lessons learned. One clear takeaway is that trade support should remain demand-driven, with tailored solutions helping translate global best practices into context-specific impact. For example, the Pacific Aid for Trade Strategy, which focuses on e-commerce, services and connectivity, has been helping to improve trade competitiveness in the region with limited available resources.

In addition, engaging local business remains vital for gaining real-time insights into the most pressing trade challenges, and tapping much-needed finance. For example, the Next Innovation with Japan Initiative has been providing venture capital to help startups in developing countries create new industries and jobs. Having access to information about best practices in trade negotiations and the implementation of trade rules can also be a game changer for policymakers in developing countries. 

Don Stephenson, trade and investment advisor to the Expert Deployment Mechanism for Trade and Development, made the point very well when he said: “Many trade development needs require large investments—to build trade infrastructure like ports and roads, or to increase productive capacity, such as through building factories. These investments must involve the private sector, where the big money is. But sometimes the development gap is knowledge. This is something that can be delivered through investments which are relatively small but that have a large impact.”

WTO’s trade support

The WTO’s technical assistance can play an important role here. Targeted and nimble trade support can help developing economies implement what’s been agreed and gain insights on the latest trade trends. Against a backdrop of declining resources, WTO members are exchanging ideas on how to do more with less, including by building strategic partnerships with international organizations, development agencies and academic institutions.

During my conversations with delegations, I often hear of the need for a one-stop shop for all trade support offered by the WTO. Another recurring suggestion is that we blend online training with face-to-face activities. Encouragingly, everyone agrees that focusing on the WTO’s most vulnerable members should remain central.

Rethink AfT

As we approach the WTO’s 14th Ministerial Conference and the 20th anniversary of the Aid for Trade Initiative next year, 2025 offers an excellent opportunity to reflect on where we are with trade development and where we would like to be. Australia and Barbados, for example, have put forward some ideas to revitalise Aid for Trade.

Over the past 20 years, $730bn has been invested in Aid for Trade to help developing economies, including LDCs, strengthen their capacity to trade. The vast majority of this—97 percent—has been directed at strengthening infrastructure and productive sectors. However, only three percent has been allocated to trade policy and regulations—areas that are crucial for helping create an enabling environment in developing economies for trade and investment. 

Focusing more on channelling trade support toward trade policy and regulations is therefore one practical way we can bolster the integration of developing economies into the multilateral trading system. To explore more ideas on how to help smaller economies boost their share of global trade, join the conversation at the WTO Public Forum on Sept 18.